The Philippines is set to propose an artificial intelligence (AI) regulatory framework during its ASEAN chairmanship in 2026, indicating Southeast Asia’s proactive stance on AI policy. This move is crucial, as highlighted by a 2020 Kearney survey revealing that 70% of Southeast Asians view AI as pivotal for their future and advocate for its rapid development in the region.
Developing a comprehensive regional regulatory framework is essential for governing AI practices and mitigating potential misuse. Such a framework would align with ASEAN’s efforts to bolster AI development in support of the region’s Digital Economy Framework Agreement and Post-2025 Agenda. Moreover, it could facilitate the widespread adoption of AI benefits across ASEAN member states, fostering competitiveness and nurturing innovative ecosystems, potentially unlocking up to US$950 billion in regional GDP growth by 2030.
However, Southeast Asia faces challenges in competing globally in the AI market due to its lower level of preparedness in advancing AI-led technologies. Singapore leads the region in AI readiness, with a significantly higher score compared to the regional average. Nonetheless, there are notable disparities, particularly when comparing Singapore to less developed countries like Myanmar.
Current AI initiatives in the region are predominantly led by a few countries with advanced digital economies, resulting in varying levels of progress. While Singapore has spearheaded numerous initiatives, other countries such as Vietnam, Thailand, and Indonesia are also making strides in AI development. However, the region requires a more detailed and encompassing regulatory framework to ensure AI’s development benefits the entire region while mitigating potential risks.
Regulating AI is essential for fostering a safe, inclusive, and innovative AI ecosystem while upholding ethical values. Before implementing a regional regulatory framework, ASEAN member states must carefully consider the limitations of existing regulatory models, such as the European Union’s Artificial Intelligence Act (AIA).
Unlike other approaches, the AIA employs a legally binding agreement rather than relying on voluntary self-regulation. While it aims to regulate AI based on risk, concerns have been raised about potential over-regulation hindering innovation. The European Union contends that the AIA promotes excellence and innovation, as outlined in its AI Strategy and recent AI innovation package launch. However, critics fear it could stifle competitiveness and innovation, particularly in open-source AI sectors.
In contrast, the AIA emphasizes compliance costs for general-purpose AI providers, estimating them to be minimal. Nonetheless, there are concerns that stringent regulations could impede cross-border innovations and foster AI nationalism. Therefore, striking a balance between innovation and regulation is paramount as Southeast Asia moves forward with its AI regulatory framework.
